Over 60s in more debt than ever

The amount of money owed by people aged over 60 leapt by a staggering 25 per cent during 2005 alone, according to new figures.

Now, the average debt of a person aged over 60 is £33,568.

The figures, released by the Consumer Credit Counselling Service (CCCS), also show that people aged between 40 and 59 still have the highest level of outstanding debt at an average of £34,456, and the number of people in this age group contacting the group for help is also increasing at a faster rate than for any other group.

Meanwhile, the level of young people struggling with debt has nearly doubled during the past few years.

The CCCS said the proportion of people aged between 18 and 24 who contacted it for help had risen from 6 per cent during the early part of the decade to 11 per cent by the end of last year.

At the same time the amount of money they owe has jumped by 26 per cent in two years from an average of £11,934 in 2003 to £15,079 in 2005, according to figures released by the Foundation for Credit Counselling, which is responsible for the CCCS, in a year book published today.

But despite the steep increase in the amount borrowed by young people, the group said debt levels were actually increasing quickest among people who were approaching retirement or who had already given up work.

The amount of money owed by people aged over 60 who contact the group for help has soared 25 per cent during 2005 alone to average £33,568.

People aged between 40 and 59 still have the highest level of outstanding debt at an average of £34,456, and the number of people in this age group contacting the group for help is also increasing at a faster rate than for any other group.

Overall the average person on one of CCCS' debt management plans, under which interest on debt is frozen in exchange for a set amount being repaid each month, owed an average of £30,763 during 2005, up from £29,340 12 months previously.

Cases of extreme debt are also worsening, with the number of people owing more than £100,000 nearly doubling to 2.7 per cent of CCCS clients, up from 1.4 per cent in 2004.

Chairman of the Foundation for Credit Counselling Malcolm Hurlston said: "The aim of this yearbook is to make use of the knowledge and experience of CCCS in improving our understanding of people in debt, alleviating their problems and anticipating future needs."